Income Tax (Trading and Other Income) Act 2005 section 643E

Reimbursement of tax paid by settlor because of section 643B(2)

Section 643E gives a settlor the right to recover tax they have been required to pay when a benefit received by a close family member is attributed to them under the settlement rules, and to obtain an HMRC certificate to support that recovery.

• Where a settlor pays tax because a benefit received by a close family member has been attributed to them under section 643B(2), they are entitled to recover the tax from the individual who received the benefit.
• To assist with recovery, the settlor can require HMRC to issue a certificate confirming the relevant tax year, the amount of deemed income, and the tax paid.
• The certificate serves as formal proof of the facts it states, supporting any reimbursement claim against the family member.
• The section was introduced by Finance Act 2018 and amended by Finance Act 2025 to update the cross-references and align with changes to the settlement income rules.